Maiden Holdings Ltd Closes Share Offering
Bermuda-based Maiden Holdings has closed its underwritten public offering of 3,000,000 7.25% Mandatory Convertible Preference Shares, Series B, with a liquidation value of $50.00 per preference share.
In addition, the underwriters have exercised their over-allotment option to purchase 300,000 additional shares of Mandatory Convertible Preferred Shares. The Company expects the issuance of additional shares to settle on or about October 3, 2013, subject to customary closing conditions. The offering was made under the Company’s existing shelf registration statement filed with the Securities and Exchange Commission.
Total net proceeds from the offering will be approximately $159.5 million, after deducting the underwriting discount and estimated offering expenses payable by the Company, and after giving effect to the underwriters’ exercise of the option to purchase 300,000 additional shares.
As previously announced, Maiden intends to use the net proceeds from the offering for general corporate purposes, primarily to support the continuing growth of its reinsurance operations. Pending application of the net proceeds towards general corporate purposes, Maiden expects to invest the net proceeds from the offering in marketable fixed income securities and short term investments.
Goldman, Sachs & Co., Morgan Stanley & Co. LLC and BofA Merrill Lynch are the Joint Book-Running Managers for the offering along with Joint Lead Manager Wells Fargo Securities, LLC. and Co-Managers FBR Capital Markets & Co., Sterne, Agee & Leach, Inc. and JMP Securities LLC.
